Value Add Multifamily Repositioning

Opportunity

In 2017, Buligo Capital Partners acquired a stabilized class-B multifamily asset with high value-add potential. It offered substantial upside by raising below-market rental rates and initiating a unit upgrade program. In addition, the property contained unused building space with capacity for constructing additional units, thus further increasing its value.

Location

Located in Atlanta’s northwest suburbs, BelAire Apartments is in the immediate path of the metro’s economic growth and in line with Buligo’s continued expansion into Southeast U.S. markets. Bisected by Interstate-75, the property offers easy access to downtown Atlanta and is proximate to ‘Platinum Triangle’, which has the city’s largest concentration of class-A office space. The immediate area is also a high-barrier-to-entry submarket with restrictions on new residential construction.

Result

The acquisition provided an opportunity to leverage the property’s existing cash flow while generating additional income through rental rate increases, strong premiums on unit renovations, and constructing 18 new units (a 10% increase in the total number of units). To further add value, several enhancements were made to the property’s common areas including improvements to the fitness center, outdoor gardens, parking spaces, and more.

Buligo’s success in fostering relationships and support with the local municipality was instrumental in obtaining required permits and approvals necessary for the construction of the additional units. Effective management of the architect and contractor facilitated the timely and on-budget completion of the construction.

Sold after only four years of purchase, the investment was realized in three years less than originally projected and with a significantly higher return than anticipated.